Government RegulatoryImpact ModelThis sheet presents the base case ("business-as-usual"--no new standard) financial projections.Central ACs and Heat PumpsBASE CASE SCENARIOBase Year2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025Income StatementUnit Sales 1.131.121.131.151.181.21 1.23171.261.281.291.311.311.331.361.401.43 1.4341.451.481.511.531.551.571.601.621.64Revenues647$639$644$656$672$690$ 702.83$719$732$736$747$747$757$777$802$817$ 818.573826$843$861$874$886$899$911$922$935$Cost of SalesLabor5.4% 35$35$35$35$36$37$38$39$40$40$40$40$41$42$43$44$ 44.25645$46$47$47$48$49$49$50$51$Material63.4% 410$405$409$416$426$438$446$456$464$467$474$474$480$493$508$518$ 519.269524$535$546$554$562$570$578$585$593$Overhead7.5% 48$48$48$49$50$52$53$54$55$55$56$56$57$58$60$61$ 61.34062$63$65$65$66$67$68$69$70$Depreciation2.6% 17$17$17$17$18$18$18$19$19$19$20$20$20$20$21$21$ 21.44722$22$23$23$23$24$24$24$24$Selling, General and AdministrativeStandard SG&A14.0% 91$89$90$92$94$97$ 98.4$101$102$103$105$105$106$109$112$114$ 114.600116$118$121$122$124$126$128$129$131$R&D1.0% 6$6$6$7$7$7$ 7.0$7$7$7$7$7$8$8$8$8$ 8.1868$8$9$9$9$9$9$9$9$Product Conversion Expense-$-$-$-$-$-$-$-$-$-$-$-$-$-$-$-$--$-$-$-$-$-$-$-$-$Profit Before Tax6.04% 39$39$39$40$41$42$ 42.5$43$44$45$45$45$46$47$48$49$ 49.47650$51$52$53$54$54$55$56$57$Taxes 18$18$18$18$18$19$ 19.3$20$20$20$20$21$21$21$22$22$ 22.46223$23$24$24$24$25$25$25$26$Net Income Before Financing21$21$21$22$22$23$ 23.2$24$24$24$25$25$25$26$26$27$ 27.01427$28$28$29$29$30$30$30$31$Cash Flow StatementNet Income 21$21$21$22$22$23$23$24$24$24$25$25$25$26$26$27$27$27$28$28$29$29$30$30$30$31$Depreciation 17$17$17$17$18$18$18$19$19$19$20$20$20$20$21$21$21$22$22$23$23$23$24$24$24$24$Change in Working Capital -$1$ (1)$(1)$(1)$(2)$(1)$(1)$(1)$(0)$(1)$(0)$(1)$(2)$(2)$(1)$(0)$(1)$(2)$(2)$(1)$(1)$(1)$(1)$(1)$(1)$Cash Flows from Operations 38$39$38$38$38$39$40$41$42$43$43$44$44$44$45$47$48$48$48$49$51$51$52$53$54$54$Ordinary Capital Expenditures(19)$(18)$(19)$(19)$(19)$(20)$(20)$(21)$(21)$(21)$(22)$(22)$(22)$(22)$(23)$(24)$(24)$(24)$(24)$(25)$(25)$(26)$(26)$(26)$(27)$(27)$Conversion Capital Expenditures-$-$-$-$-$-$-$-$-$-$-$-$-$-$-$-$-$-$-$-$-$-$-$-$-$-$Cash Used In Investment(19)$(18)$(19)$(19)$(19)$(20)$(20)$(21)$(21)$(21)$(22)$(22)$(22)$(22)$(23)$(24)$(24)$(24)$(24)$(25)$(25)$(26)$(26)$(26)$(27)$(27)$Net Cash Flow 20$20$19$19$19$19$20$20$21$22$22$23$22$22$22$23$ 24.67$24$24$24$25$26$26$26$27$27$Terminal Value-$-$-$-$-$-$-$-$-$-$-$-$-$-$-$-$ 395$-$-$-$-$-$-$-$-$-$Present Value Factor1.000 0.941 0.886 0.834 0.785 0.739 0.695 0.655 0.616 0.580 0.546 0.514 0.484 0.455 0.429 0.403 0.380 0.357 0.336 0.317 0.298 0.281 0.264 0.249 0.234 0.220Discounted Cash Flow20$19$17$16$15$14$14$13$13$13$12$12$11$10$9$9$ 159$9$8$8$8$7$7$7$6$6$Industry Value thru 2016375$ROIC CalculationNet Property Plant and Equipment 96$98$ 100$102$103$105$107$109$111$113$115$117$119$121$123$125$127$Net Working Capital 61$61$60$61$62$63$65$66$68$69$69$70$70$71$73$75$77$Other Operating Assets, Net of other Liabilities-$-$-$-$-$-$-$-$-$-$-$-$-$-$-$-$-$Operating Invested Capital (beginning of year)157$159$160$162$165$168$172$175$179$182$184$187$189$192$196$201$204$Return on Invested Capital (ROIC)13.58% 13.25% 13.29% 13.35% 13.42% 13.52% 13.49% 13.55% 13.52% 13.37% 13.38% 13.18% 13.20% 13.35% 13.48% 13.44% 13.22%Weighted Average Cost of Capital (WACC)6.24% 6.24% 6.24% 6.24% 6.24% 6.24% 6.24% 6.24% 6.24% 6.24% 6.24% 6.24% 6.24% 6.24% 6.24% 6.24% 6.24%8/29/2006Base CaseCAC_GRIM_v3.xlsGovernment RegulatoryImpact Model2026 2027 2028 2029 2030 20311.661.691.711.731.761.76948$962$975$989$ 1,003$1,003$51$52$53$53$54$54$601$610$619$628$636$636$71$72$73$74$75$75$25$25$26$26$26$26$133$135$137$139$140$140$9$ 10$10$10$10$10$-$-$-$-$-$-$57$58$59$60$61$61$26$26$27$27$28$28$31$32$32$33$33$33$31$32$32$33$33$33$25$25$26$26$26$26$(1)$(1)$(1)$(1)$(1)$(1)$55$56$56$57$58$58$(27)$(28)$(28)$(29)$(29)$(29)$-$-$-$-$-$-$(27)$(28)$(28)$(29)$(29)$(29)$27$28$28$29$29$29$-$-$-$-$-$-$0.207 0.195 0.184 0.173 0.163 0.1536$5$5$5$5$4$8/29/2006Base CaseCAC_GRIM_v3.xls